Understanding Redundancy in Ireland: Your Guide to Redundancy Payments & Entitlements

Redundancy can be a stressful and uncertain time, but knowing your rights and entitlements in Ireland can help you navigate this process with confidence. Whether you’re facing redundancy or simply want to understand your options, this guide covers everything you need to know about redundancy payments, statutory entitlements, and ex gratia payments in Ireland.


What Is Redundancy in Ireland?

Redundancy occurs when an employer needs to reduce their workforce due to business closure, financial difficulties, or restructuring. If you’ve been employed continuously for at least two years with the same employer, you may be entitled to a statutory redundancy payment.

Redundancy Payments in Ireland

1. Statutory Redundancy Pay

The statutory redundancy payment is the minimum legal payment an employer must provide to qualifying employees. It is calculated as follows:

  • Two weeks’ pay per year of service (capped at €600 per week)

  • One additional week’s pay

To determine your entitlement, you can use an online Redundancy Calculator Ireland, which helps estimate the amount you should receive based on your years of service and salary.

2. Ex Gratia Payments

An ex gratia payment is an additional, discretionary redundancy payment made by the employer. Unlike statutory redundancy, this payment is not legally required, but many employers offer it as part of a redundancy package. The amount varies depending on company policy, negotiations, and length of service.

Redundancy Entitlements in Ireland

In addition to redundancy pay, you may be entitled to:

  • Notice Period: Employers must provide a minimum statutory notice period based on your length of service.

  • Unpaid Wages & Holiday Pay: Any outstanding wages and accrued holiday leave must be paid.

  • Jobseeker’s Allowance or Benefit: If you are unemployed after redundancy, you may qualify for social welfare support.

How Money Maximising Advisors Limited Can Help

Navigating redundancy can be complex, especially when negotiating for fair compensation. At Money Maximising Advisors Limited, we provide expert redundancy advice in Ireland, helping employees understand their rights, calculate their entitlements, and maximize their redundancy pay.

Need Help with Your Redundancy? Contact Us Today!

If you need assistance with redundancy payments, entitlements, or negotiating an ex gratia payment, get in touch with our team for tailored financial advice. We’re here to help you secure the best possible outcome for your future.

Location: Galway, Ireland

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